Greece to emerge from crippling six year recession in 2014

Rise in tourism, investment and exports expected to help Greece haul itself
out of recession next year, finance ministry says

The Greek economy, which has shrunk about a quarter since its peak in 2007, will grow by 0.6pc next year thanks to a rebound in investment and exports including tourism, the budget predicted. The economy is set to contract by 4pc this year.Photo: Reuters

Greece will emerge from six years of recession next year, its draft 2014 budget projected on Monday, in one of the strongest signs yet that the country has left the worst of its crippling debt crisis behind.

The economy, which has shrunk about a quarter since its peak in 2007, will grow by 0.6pc next year thanks to a rebound in investment and exports including tourism, the budget predicted. The economy is set to contract by 4pc this year.

Athens is also targeting a primary budget surplus of 1.6pc of national output next year and is on track to post a small surplus this year. Attaining a primary surplus - excluding debt servicing costs - is key to helping Athens secure debt relief from its international lenders.

"In the last three years Greece found itself in a painful recession with an unprecedented level of unemployment," Deputy Finance Minister Christos Staikouras said as he unveiled the 2014 budget. "Since this year the sacrifices have begun to yield fruit, giving the first signs of an exit from the crisis."

Excluded from financial markets since 2010, Greece has been kept afloat solely with €240bn (£202bn) in aid from its EU and IMF partners. After nearly crashing out of the euro zone and dragging down the global economy along with it, Athens has returned to more stable financial footing over the past year, though it is still expected to require further debt relief.